Financial Data and Key Metrics - Total revenue for Q2 FY25 was $1.163 billion, up 2% YoY, exceeding guidance by $13 million [13] - Enterprise revenue grew 4% YoY, representing 59% of total revenue, up from 58% a year ago [13] - Online Average Monthly Churn decreased to 2.9%, the lowest rate ever reported, down from 3.2% in Q2 FY24 [13] - Non-GAAP gross margin was 78.6%, compared to 80.3% in Q2 FY24, primarily due to investments in AI and data center upgrades [15] - Non-GAAP operating income was $456 million, with a 39.2% operating margin, compared to 40.5% in Q2 FY24 [16] - Non-GAAP diluted EPS was $1.39, $0.18 above the high end of guidance and $0.05 higher than Q2 FY24 [16] - Operating cash flow grew 34% YoY to $449 million, and free cash flow grew 26% YoY to $365 million [17] Business Line Performance - Zoom AI Companion reached 1.2 million enabled accounts by the end of Q2 [12] - Workvivo achieved 69 customers with over $100,000 in ARR, roughly doubling YoY [12] - Zoom Contact Center surpassed 1,100 customers, representing over 100% YoY growth [12] - The company launched Zoom Docs, integrating productivity tools into the Zoom platform [5] - Zoom Webinar now supports up to 1 million attendees, showcasing scalability [4] Market Performance - Americas revenue grew 3% YoY, EMEA was flat, and APAC declined by 2% [14] - On a constant currency basis, APAC grew 1%, while EMEA declined 1% YoY [14] - The company saw 7% YoY growth in the up-market, with 3,933 customers contributing over $100,000 in trailing 12-month revenue [13] Strategy and Industry Competition - The company is focusing on expanding its platform with AI capabilities, particularly through Zoom AI Companion, which enhances productivity across meetings, chat, and contact center operations [6] - Zoom is transitioning into the 2.0 phase of AI-enabled work, where AI Companion will provide contextual insights and perform tasks on behalf of users [7] - The company is leveraging its modern architecture to compete in the contact center market, displacing legacy solutions and first-generation cloud-based systems [5][29] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong adoption of AI Companion and the success of Workvivo in driving employee engagement [12][22] - The company expects to reaccelerate growth in Q3, with revenue guidance of $1.16 billion to $1.165 billion, representing 2.3% YoY growth at the midpoint [18] - Full-year FY25 revenue is expected to be between $4.63 billion and $4.64 billion, with non-GAAP operating income of $1.79 billion to $1.8 billion [18] Other Important Information - CFO Kelly Steckelberg announced her departure after seven years, with a comprehensive search underway for her replacement [10][11] - The company repurchased 4.8 million shares for $288 million in Q2, up from 2.4 million shares for $150 million in Q1 [17] Q&A Session Summary Question: Interest in AI Companion and investment plans - AI Companion is widely adopted across Zoom products, with meeting summaries being the most popular feature [20] - The company plans to enhance AI Companion further, with new features to be announced at Zoomtopia in October [20] Question: Workvivo adoption drivers - Workvivo is driving employee engagement, particularly in large enterprises, with significant new customer wins in Q2 [22] Question: Macroeconomic impact on online and enterprise segments - The company sees stability in enterprise retention rates and expects net dollar expansion to reaccelerate by mid-next year [25] - SMB and small customers face headwinds due to economic concerns, but overall performance is in line with expectations [26] Question: Contact Center competitive advantages and revenue contribution timeline - Zoom Contact Center is winning deals due to its modern architecture, AI capabilities, and seamless integration with other Zoom products [28][29] - The company does not expect Contact Center to become a material revenue contributor until it reaches 10% of total revenue, similar to Zoom Phone's trajectory [55] Question: AI Companion cost and monetization strategy - AI Companion is included in the core Zoom offering at no additional cost, but the company plans to monetize AI features in premium services like Contact Center [31] Question: Gross margin impact from generative AI - The company is guiding to a 79% gross margin for FY25, with a long-term target of 80%, despite prioritizing AI investments [32] Question: New business growth in the online segment - The company is adding features and offerings to drive growth in the online segment, though SMBs remain cautious due to economic uncertainty [36] Question: Large Contact Center win details - The largest Contact Center win in Q2 was driven by the customer's trust in Zoom's innovation speed, AI capabilities, and modern architecture [37][38] Question: Contact Center usage (internal vs. external) - The majority of Contact Center usage is for external customer engagement, with some internal IT help desk applications [39] Question: Tracking AI Companion success - The company tracks AI Companion success through account activations and usage metrics like meeting summaries [41][42] Question: Net dollar expansion and upmarket growth - Net dollar expansion is expected to reaccelerate by mid-next year, driven by Zoom Phone, Contact Center, and Workvivo [43][44] Question: Capital allocation strategy - The company is considering M&A opportunities to accelerate growth, particularly in AI and new product areas [53][54] Question: Contact Center revenue target - Contact Center is in its second year, and the company expects it to follow a similar trajectory to Zoom Phone, which took five years to reach 10% of revenue [55] Question: Drivers of Contact Center wins - Contact Center wins are driven by modern architecture, AI capabilities, stability, and competitive pricing [58][59] Question: UC and Contact Center pipeline - The company sees strong synergy between Zoom Phone and Contact Center, with each driving demand for the other [62] Question: AI products driving expansion - AI Companion is enhancing customer trust and driving expansion, particularly in premium services like Contact Center [64] Question: Contact Center customer mix - Contact Center deals are getting larger, with a focus on premium tiers and AI features, driving higher ASPs [66] Question: Online retention improvement - Online retention improved due to platform enhancements, with churn at a record low despite seasonal pressures [68] Question: AI regulation impact - The company is taking a cautious approach to AI regulation, with no significant impact on business so far [70] Question: International performance - EMEA revenue declined due to economic challenges, but the company is investing in the region with new leadership and facilities [72]

Zoom Video Comms (NASDAQ:ZM) just reported results for the second quarter of 2025. Zoom Video Comms reported earnings per share of $1.39. This was above the analyst estimate for EPS of $1.21. The company reported revenue of $1.16 billion. This was 1.09% better than the analyst estimate for revenue of $1.15 billion. InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per sh ...

For the quarter ended July 2024, Zoom Video Communications (ZM) reported revenue of $1.16 billion, up 2.1% over the same period last year. EPS came in at $1.39, compared to $1.34 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.15 billion, representing a surprise of +1.22%. The company delivered an EPS surprise of +14.88%, with the consensus EPS estimate being $1.21. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

Zoom Video Communications Q2 FY25 Earnings August 21, 2024 | --- | --- | |-----------------------------|-------| | | | | | | | Use of non-GAAP financial | | | measures | | In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: Revenue in Constant Currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP R&D expense, non-GAAP S&M expense, non-GAAP G&A expense, non-GAAP operating margi ...

Zoom Video Communications (ZM) came out with quarterly earnings of $1.39 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 14.88%. A quarter ago, it was expected that this videoconferencing company would post earnings of $1.19 per share when it actually produced earnings of $1.35, delivering a surprise of 13.45%. Over the last ...

Exhibit 99.1 Zoom Video Communications Reports Financial Results for the Second Quarter of Fiscal Year 2025 • Second quarter total revenue of $1,162.5 million, up 2.1% year over year as reported and 2.4% in constant currency • Second quarter Enterprise revenue of $682.8 million, up 3.5% year over year • Second quarter GAAP operating margin of 17.4% and non-GAAP operating margin of 39.2% • Second quarter operating cash flow of $449.3 million, up 33.7% year over year • Repurchased approximately 4.8 million sh ...

Financial Performance - Second quarter total revenue of $1,162.5 million, up 2.1% year over year as reported and 2.4% in constant currency [1] - Second quarter Enterprise revenue of $682.8 million, up 3.5% year over year [1] - Second quarter GAAP operating margin of 17.4% and non-GAAP operating margin of 39.2% [1] - Second quarter operating cash flow of $449.3 million, up 33.7% year over year [1] - Non-GAAP net income for the second quarter was $436.4 million, or $1.39 per share [4] Customer Metrics - 3,933 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 7.1% year over year [6] - Approximately 191,600 Enterprise customers [6] - Online average monthly churn of 2.9% for the second quarter, down 30 bps year over year [6] - Trailing 12-month net dollar expansion rate for Enterprise customers of 98% [6] Strategic Highlights - Zoom Contact Center secured several marquee customers, including its largest single order deal to-date [2] - Customers contributing more than $100,000 in trailing 12 months revenue increased by 7.1% year over year [2] - Online average monthly churn reached its lowest ever rate [2] Cash and Marketable Securities - Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of July 31, 2024 was $7.5 billion [5] - Free cash flow for the second quarter was $365.1 million, up 26.2% year over year [5] Financial Outlook - Third quarter fiscal year 2025 total revenue expected to be between $1.160 billion and $1.165 billion [8] - Full fiscal year 2025 total revenue expected to be between $4.630 billion and $4.640 billion [8] - Full fiscal year non-GAAP income from operations expected to be between $1.790 billion and $1.800 billion [8] Share Repurchase - Repurchased approximately 4.8 million shares of common stock in Q2 [1] - $1.062 billion of authorized share repurchase remaining as of July 31, 2024 [9]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoom Video Communications. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Cathie Wood's Ark Invest made headlines by offloading 161,836 shares of Zoom Video Communications Inc. ZM just ahead of the company's second quarter earnings report. The sale, valued at approximately $9.1 million, signals a potential red flag for the video-conferencing giant, which has seen its stock price dip nearly 14% year-to-date. Earnings To The Rescue? Zoom is set to report its second-quarter earnings on Aug. 21, with Wall Street expecting $1.21 in EPS and $1.1 billion in revenue. Despite the pressure ...

SAN JOSE, Calif., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Today Zoom Video Communications, Inc. (NASDAQ: ZM) announced the launch of its new single-use webinar offering, which can host up to 1 million attendees. In addition to its monthly and annual webinar subscription options, Zoom now offers a range of single-use webinar options to accommodate larger event sizes. Customers can now choose webinars for 10K, 50K, 100K, 250K, 500K, and 1M attendee capacities. Each single-use webinar package includes support from Z ...